The currency rose 0.3% on the day and about 1% week-on-week to end at 95.38 per dollar. On the month, though, it slipped about 0.7% as oil prices climbed due to renewed hostilities in the Middle East.

Brent was on track to rise 21% for the month and WTI 18%, snapping two straight months of declines for both oil benchmarks.

Worries over the impact of oil prices have exerted pressure on the rupee. The currency appeared vulnerable to breaching record lows last week but was shored up by firm central bank intervention last Friday, with the support continuing this week.

Traders in the foreign exchange market have pointed to a pick up in quick, but, aggressive dollar sales by state-run banks, often at times when market liquidity appears to be thinning.

“The intent seems to be to find pockets to push USD/INR lower without using a large amount of firepower,” a trader at a foreign bank said, referring to the quantum of dollar sales.

On Friday, a modest retreat in oil prices also aided the local currency alongside a broadly weaker dollar.

Most Asian currencies firmed on Friday, with traders paying attention to moves in the Japanese yen and Korean won after authorities in both countries stepped in to buy their currencies, possibly with involvement from the United States.

Meanwhile, drawdowns in artificial intelligence linked stocks globally have shored up India’s battered IT stocks with the Nifty IT index rising 16% this month, outpacing the 2% rise in the broader Nifty 50 index.

Later in the day, attention will turn to India’s forex reserves data for the week ended July 24 and the RBI’s end-June forward book figures.

The Pakistani rupee extended its marginal gains against the US dollar on Friday.

The local unit closed the day at 277.80, a gain of Re0.01 against the greenback.

On Thursday, the Pakistani rupee settled at 277.81 against the dollar.

Globally, the US dollar rose as much as 0.8% to 160.690 against the Japanese yen in early trades on Friday, after diving 2.4% in its biggest single-day drop since January 2023 in the previous session.

Japan conducted yen-buying, dollar-selling market intervention in the New York session overnight, a market source told Reuters, pulling the sagging currency from four-decade lows.

In a rare coordinated move, South Korea also conducted dollar-selling intervention on Thursday, a market source told Reuters.

The won rose to a nine-month high before giving back some of its gains, with the Asian currency last at 1,434.26 per US dollar in early trading, down more than 0.7%.

All eyes are now on the BOJ, which is widely expected to keep short-term interest rates steady at 1%, having just hiked in ⁠June, while delivering a hawkish signal as price pressures mount.

The BOJ meeting follows the US Federal Reserve’s decision to leave interest rates unchanged, which bruised the dollar ⁠as traders questioned whether the Fed’s new chief was serious about containing inflation.

That has left the dollar on the defensive. The US dollar index , which tracks the currency against six major peers, was a touch higher at 100.12 after plunging 0.8% in the previous session. It was heading for a ⁠1.3% drop for the week and a 1% loss for the month.

Oil prices rose on Friday and remained on track for a monthly increase as ‌reports that some tankers were forced to turn around in the Strait of Hormuz prompted traders to reassess shipping flows through the key waterway.

Brent futures were up $1.31, or 1.47%, at $90.34 a barrel by 1329 GMT, while US West Texas Intermediate (WTI) crude was up $1.95, or 2.33%, to $85.54 ​a barrel.

Inter-bank market rates for dollar on Friday

BID Rs 277.80

OFFER Rs 278.00

Open-market movement

In the open market, the PKR lost 6 paise for buying and gained 3 paise for selling against USD, closing at 278.93 and 279.85, respectively.

Against Euro, the PKR lost 77 paise for buying and 89 paise for selling, closing at 321.63 and 324.83, respectively.

Against UAE Dirham, the PKR gained 8 paise for buying and 6 paise for selling, closing at 76.27 and 76.91, respectively.

Against Saudi Riyal, the PKR gained 10 paise for buying and 4 paise for selling, closing at 74.56 and 75.18, respectively.

Open-market rates for dollar on Friday

BID Rs 278.93

OFFER Rs 279.85

The Indian rupee closed at 95.68 per U.S. dollar, little changed from 95.6475 in the previous session.

Brent crude oil futures swung between gains and losses in a $93-$89 range on Thursday as renewed attacks between the United States and Iran spurred fresh concerns about oil flows through key shipping routes.

State-run banks, meanwhile, were spotted selling dollars near the day’s low for the rupee around 95.75. Elevated oil price volatility has also contributed to a pickup in importer hedging, traders said, which has weighed on the rupee in recent sessions.

India imports nearly 90% of its crude requirements, making it one of the world’s most vulnerable economies to the Middle East oil shock.

The rupee had declined past 96 per dollar and appeared vulnerable to breaching its record low of 96.96 last week, before the central bank stepped in to shore up the currency.

“While recent rupee strength has been aided by RBI intervention, the broader backdrop of elevated crude oil prices, persistent geopolitical tensions, and a Fed that continues to keep the door open for further tightening remains supportive for the dollar,” said Amit Pabari, managing director at FX advisory firm CR Forex.

The 30-year Treasury bond yield hit a 19-year high of 5.239% on Thursday, a day after the Federal Reserve kept interest rates on hold, but Chair Kevin Warsh offered mixed messages on the outlook for monetary policy and inflation.

The dollar index was steady at 100.8 while most Asian currencies slipped.

The Pakistani rupee extended its marginal gains against the US dollar on Thursday.

The local unit closed the day at 277.81, a gain of Re0.01 against the greenback.

On Wednesday, the Pakistani rupee settled at 277.82 against the dollar.

Globally, the US dollar found its footing at the start of Asian trading on Thursday after the Federal Reserve kept its policy interest ​rate on hold and Chair Kevin Warsh left markets guessing about how divisions ‌on its rate-setting committee would resolve.

The dollar index, which measures the greenback’s strength against six currencies, nudged up 0.1% to 100.89 after the US said it was conducting air strikes in Iran.

The British pound ​was 0.1% weaker at $1.3355 ahead of a Bank of England interest rate decision ​on Thursday, with market participants expecting no change. The euro slid 0.1% ⁠to $1.1457.

The Australian dollar was steady along with its New Zealand counterpart at $0.6959 and $0.5795 ​respectively, while the yen was level at 163.455 yen per U.S. dollar.

Geopolitical developments offset earlier ​weakness in the greenback, which had fallen to its weakest since July 20 after the Fed decision.

Treasury bonds reacted violently to the Fed decision, with the 30-year yield climbing to its highest in almost two decades.

Fed funds futures are pricing in an implied 42.6% probability that the Fed will hold its rate at ​its next two-day ​meeting ending September 16, ⁠compared with a 24% chance before the Fed’s latest meeting, the CME Group’s FedWatch tool showed.

Oil prices fell on ‌Thursday, as investors weighed talks between Oman and Iran over the Strait of Hormuz even as Washington and Tehran traded strikes on each other’s military targets again.

Brent futures were down $1.42, or 1.56%, at $89.32 a barrel at 1324 GMT after touching a high of $93.31.

Inter-bank market rates for dollar on Thursday

BID Rs 277.81

OFFER Rs 278.01

Open-market movement

In the open market, the PKR gained 5 paise for buying and remained unchanged for selling against USD, closing at 278.87 and 279.88, respectively.

Against Euro, the PKR lost 1.34 rupee for buying and 1.56 rupee for selling, closing at 320.86 and 323.94, respectively.

Against UAE Dirham, the PKR gained 3 paise for buying and 1 paisa for selling, closing at 76.35 and 76.97, respectively.

Against Saudi Riyal, the PKR gained 5 paise for both buying and selling, closing at 74.66 and 75.22, respectively.

Open-market rates for dollar on Thursday

BID Rs 278.87

OFFER Rs 279.88

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Traders also said that state-run banks sold dollars in short-lived bursts, blunting pressure from dollar demand related to the monthly futures expiry.

The rupee closed at 95.6475 per dollar, up 0.2% from Wednesday’s closing level. The currency touched a peak of 95.49 earlier in the session, its strongest level since July 10.

Meanwhile, Brent crude jumped more than 3.5% to $87.1 per barrel, as Middle East tensions escalated following joint U.S.-Saudi strikes in Iraq and the interception of Iranian ballistic missiles aimed at U.S. forces in the region.

Brent has swung between $102 and $84 per barrel since Friday amid conflicting reports on the hostilities.

Against this backdrop of global volatility, the Federal Reserve will announce its monetary policy decision later in the day. Markets are pricing in a roughly 30% chance of a 25-basis-point hike.

Reflecting the uncertainty, near-term rupee volatility expectations rose, with the 1-month implied volatility gauge at 5.4%, near a two-week high.

“The (Fed) statement might acknowledge the upside risks to inflation posed by renewed geopolitical conflict, and there will likely be at least one dissent in favor of a hike,” analysts at Goldman Sachs said in a note. They expect the U.S. central bank to keep rates unchanged on Wednesday.

Elsewhere, global shares struggled to push higher, as modest gains in Europe and the U.S. did little to calm investors after a punishing sell-off in Asia led by chipmakers.

India’s limited exposure to the AI theme, though, proved a silver lining, with India’s benchmark stock gauge climbing 1.1%, led by an over 2% rise in IT stocks that had previously been battered by AI disruption concerns.

The Pakistani rupee extended its marginal gains, appreciating 0.01% against the US dollar on Wednesday.

The local unit closed the day at 277.82, a gain of Re0.03 against the greenback.

On Tuesday, the Pakistani rupee settled at 277.85 against the dollar.

Moreover, the US dollar held near a one-month high on Wednesday as hostilities flared anew in the Middle East, while traders awaited a key ​Federal Reserve interest rate decision later in the day.

The Australian dollar slid ‌after inflation data came in below expectations, reducing the chance of further rate hikes from the Reserve Bank of Australia. It was 0.37% lower at $0.69475.

The euro was nursing losses after falling to a one-month low in the previous session, inching up 0.03% to $1.1389.

Sterling eased 0.03% to $1.3287, languishing near its weakest level since July 1.

The New Zealand dollar declined 0.08% ​to $0.5783.

Oil prices jumped nearly 7% on Wednesday as major airstrikes resumed in the Middle East and dashed hopes ‌for an imminent end to the U.S.-Israeli war with Iran, while industry data showed U.S. crude inventories fell.

Brent futures were up $5.70, or 6.8%, at $89.79 a barrel by 1335 GMT. US West Texas Intermediate (WTI) crude gained $4.94, or 6.2%, to $84.20 a barrel.

Inter-bank market rates for dollar on Wednesday

BID Rs 277.82

OFFER Rs 278.02

Open-market movement

In the open market, the PKR lost 5 paise for buying and 1 paisa for selling against USD, closing at 278.92 and 279.88, respectively.

Against Euro, the PKR lost 96 paise for buying and 36 paise for selling, closing at 319.52 and 322.38, respectively.

Against UAE Dirham, the PKR lost 3 paise for buying and 2 paise for selling, closing at 76.38 and 76.98, respectively.

Against Saudi Riyal, the PKR lost 3 paise for buying and remained unchanged for selling, closing at 74.71 and 75.27, respectively.

Open-market rates for dollar on Wednesday

BID Rs 278.92

OFFER Rs 279.88

Brent crude oil prices fell 3% to $85.6 per barrel, their lowest in over a week, which helped lift the rupee to 95.8525 per dollar, up 0.1% from its previous close. The local currency hit a record low of 96.96 on May 20.

State-run banks were spotted selling dollars on the day, most likely on behalf of the Reserve Bank of India, traders said.

The RBI has intervened in every trading session since Friday, stepping up defense of the currency, which traders are reading as a sign of lower tolerance for rupee weakness.

The RBI’s stepped-up intervention also comes against the backdrop of higher-than-expected inflows - about $40 billion since early June - spurred by a series of measures unveiled last month.

The central bank seems to be laying down a “soft line in the sand,” for the rupee, a trader at a state-run bank said. At the same time, if crude prices move sharply higher again, the pressure could rebound, the trader added.

Growing hopes for a resolution to the U.S.-Iran conflict have pulled oil prices about 15% lower from the peak hit last week, but traders are wary of a quick turn, as seen on multiple occasions over the course of the Iran war which started in late February.

Meanwhile, global stocks fell as investors dumped chipmakers on concerns about Chinese competition and funding of the AI boom with rising odds of a Federal Reserve rate hike also dampening the mood.

Interest rate futures are pricing a one-in-three chance of a rate hike by the Fed on Wednesday. The dollar index was a tad higher on the day at 101.6.

The Pakistani rupee extended its marginal gains against the US dollar on Tuesday.

The local unit closed the day at 277.85, a gain of Re0.01 against the greenback.

On Monday, the Pakistani rupee settled at 277.86 against the dollar.

Furthermore, the US dollar held at a one-month high on Tuesday as traders weighed a slim but lingering chance ‌of a rate hike at the Federal Reserve’s upcoming meeting, even as falling oil prices eased some concerns over inflation.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, edged up 0.03% to 101.55, with the euro down 0.01% at $1.1366.

Against the Japanese yen, ​the dollar gained 0.05% to 163.82, while sterling eased 0.02% to $1.3284.

Oil prices extended losses on Tuesday, hitting their lowest levels in more than a week on cautious ‌hopes for a resolution to the U.S.-Iran conflict as traders continued to assess developments in the Middle East.

Oman has won backing from Gulf states for a plan that would let Tehran collect voluntary fees to use the Strait of Hormuz, a Gulf source told Reuters on Tuesday, a path towards ending the disruption to oil trade ​caused by the US-Israeli war on Iran.

Brent crude futures were down $1.68, or 1.90%, at $86.68 by 1111 GMT. U.S. West Texas Intermediate ​crude was at $81.33 a barrel, down $1.28, or 1.55%.

Inter-bank market rates for dollar on Tuesday

BID Rs 277.85

OFFER Rs 278.05

Open-market movement

In the open market, the PKR gained 2. paise for buying and remained unchanged for selling against USD, closing at 278.87 and 279.87, respectively.

Against Euro, the PKR gained 1.23 rupee for buying and 65 paise for selling, closing at 318.56 and 322.02, respectively.

Against UAE Dirham, the PKR gained 2 paise for buying and lost 1 paisa for selling, closing at 76.35 and 76.96, respectively.

Against Saudi Riyal, the PKR gained 3 paise for buying and 2 paise for selling, closing at 74.68 and 75.27, respectively.

Open-market rates for dollar on Tuesday

BID Rs 278.87

OFFER Rs 279.87

The Pakistani rupee extended its marginal gains against the US dollar on Monday.

The local unit closed the day at 277.86, a gain of Re0.01 against the greenback.

On Friday, the Pakistani rupee settled at 277.87 against the dollar.

The State Bank of Pakistan (SBP) Monetary Policy Committee (MPC), in its first meeting in the fiscal year 2026-27, decided to keep the policy rate unchanged at 11.5%.

Internationally, the dollar slumped against its major peers at the start of Asian trading on Monday after the US paused ​its bombing campaign in Iran during the weekend, prompting a drop ‌in oil prices and boosting global investor confidence.

Against the yen, the US dollar was down 0.2% at 163.585 yen, its biggest decline since July 10.

The euro was up 0.2% at $1.1397, while the British pound rose by a similar ​magnitude to $1.3353.

The dollar index, which ​measures the greenback against ​a basket of ⁠six currencies, slipped 0.25% to 101.23 at the start of a week packed with central bank meetings, including that ​of the Federal Reserve.

Oil prices hovered around a one-week low ​on Monday after the US and Iran paused strikes over the weekend following two weeks of attacks, raising hopes of a ‌diplomatic solution that would de-escalate the conflict and allow shipping to resume in the Strait of Hormuz.

Brent crude futures fell $5.85, or around 6%, to $90.93 a barrel by 1309 GMT. They fell as low as 9.5% earlier in the session to $87.55 a barrel.

Inter-bank market rates for dollar on Monday

BID Rs 277.86

OFFER Rs 278.06

Open-market movement

In the open market, the PKR lost 12 paise for buying and 5 paise for selling against USD, closing at 278.89 and 279.87, respectively.

Against Euro, the PKR lost 91 paise for buying and 90 paise for selling, closing at 319.79 and 322.67, respectively.

Against UAE Dirham, the PKR lost 3 paise for buying and 1 paisa for selling, closing at 76.37 and 76.95, respectively.

Against Saudi Riyal, the PKR lost 2 paise for buying and 5 paise for selling, closing at 74.71 and 75.29, respectively.

Open-market rates for dollar on Monday

BID Rs 278.89

OFFER Rs 279.87

The Indian rupee opened at 96.1475 against the U.S. dollar and climbed to an intraday high of 95.7950, having settled at 96.5625 in the previous session.

It ended 0.7% higher on Monday, biggest single session gain since June 12.

The currency, already buoyed by falling oil prices, saw its rally pick up pace after the dollar/rupee pair slipped below the 96.14-96.16 range and plunged to around 95.80 within minutes.

Traders said several factors drove the rally: oil prices extended their slide following the U.S.-Iran pause in attacks, the rupee had broken through near-term resistance levels, while the Reserve Bank of India’s dollar selling further boosted momentum.

“The recent rise in USD/INR was primarily driven by higher crude oil prices. With geopolitical concerns easing today, the rupee is expected to see a meaningful appreciation on a mean-reversion basis, especially relative to global and Asian currencies,” said Dhaval Shah, founder and managing director, De-Risk Forex Consultancy.

“Additionally, inflows through the FCNR(B) scheme and continued foreign investment in domestic equity markets are providing further support to the rupee.”

The RBI’s measures to attract foreign currency inflows have drawn in nearly $32 billion, RBI Governor Sanjay Malhotra told The Hindu BusinessLine in an interview published on Monday.

Alongside dollar sales in the spot market, the RBI also conducted buy/sell swaps, which weighed on forward premiums, per traders. The one-year implied interest rate dropped about 10 basis points to 2.82%.

Estimates of Monday’s intervention ranged from roughly $1.5 billion to $3 billion, according to three traders, with bankers saying the central bank was active in both the spot and non-deliverable forward markets.

The RBI has intervened to the tune of around $1.5 billion in the spot market, said Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors.

Meanwhile, the decline in oil prices added to the rupee’s momentum, with Brent crude falling nearly 10% during Asian trading to slip below $88 per barrel.

State-run banks were seen selling dollars shortly before the market opened at 9 a.m. IST, likely on behalf of the Reserve Bank of India, five traders told Reuters on Friday.

The selling continued through most of the session, pulling the rupee higher before it ended at 96.5625 per U.S. dollar, little changed on the day.

Brent crude topped $100 a barrel for the first time in two months before retreating about 4%. Developments in the Middle East pointed to worsening supply disruptions.

U.S. President Donald Trump has promised “major military punishment” for Iran and its Houthi allies after the Yemeni fighters struck two Saudi oil tankers in the Red Sea.

India, which imports nearly 90% of its crude needs, is particularly vulnerable to oil price shocks as they can fan inflation, strain external balances and weigh on the rupee by boosting demand for dollars.

Those concerns have pushed the rupee back near its record low of 96.96 hit in May, prompting intervention by the Reserve Bank of India that likely extended across multiple market segments on Friday.

Alongside spot dollar sales and intervention in the non-deliverable forwards market to steady the currency, the central bank likely conducted far tenor dollar-rupee buy/sell swaps to offset the liquidity impact of its spot interventions, traders said. The 15-month dollar-rupee forward premium declined 7 paisa to INR 3.47.

Elevated hedging against rupee weakness has also dragged on the currency. Clearing house data shows that net weekly forward dollar buying by merchants fell to roughly $2.9–$5.1 billion in early July before rebounding to about $7.1 billion in the week ending July 17.

The rupee’s recent fall and rise in oil prices “has likely surprised markets and, in turn, spawned another wave of hedging,” analysts at J.P. Morgan said in a note.

The Pakistani rupee extended its marginal gains, appreciating 0.01% against the US dollar on Friday.

The local unit closed the day at 277.87, a gain of Re0.03 against the greenback.

On Thursday, the Pakistani rupee settled at 277.90 against the dollar.

Moreover, the dollar rode US Treasury yields higher on Friday and hovered near a 40-year peak against the yen, as a ​spike in oil prices and a renewed global trade war raised the stakes for inflation.

Sterling languished around a three-week low ‌and bought $1.3313 in early Asia trade, after sliding nearly 0.5% overnight against a resurgent dollar.

The euro was similarly nursing losses and wobbled at $1.1376, drawing little support from the prospect of imminent European Central Bank rate hikes, while the dollar held near a three-week top against a basket of currencies at 101.45.

The dollar’s resurgence came as oil prices climbed ​back above $100 a barrel for the first time since May after Yemen’s Houthis struck two Saudi oil tankers in the Red Sea, ​extending the Middle East war to a second major shipping chokepoint.

Oil futures prices fell over 3% on Friday but were still ​set for hefty weekly gains because of worsening disruption to energy flows in the Red Sea and ‌fears of further escalation in the US-Israeli war with Iran.

Brent futures fell $3.59, or 3.57%, to $97.10 a barrel at 1240 GMT, having settled above $100 in the previous session for the first time since May after Houthis said they struck two Saudi oil tankers in the Red Sea.

Inter-bank market rates for dollar on Friday

BID Rs 277.87

OFFER Rs 278.07

Open-market movement

In the open market, the PKR lost 1 paisa for buying and gained 4 paise for selling against USD, closing at 278.77 and 279.82, respectively.

Against Euro, the PKR gained 91 paise for buying and 1.01 rupee for selling, closing at 318.88 and 321.77, respectively.

Against UAE Dirham, the PKR lost 3 paise for buying and 9 paise for selling, closing at 76.34 and 76.94, respectively.

Against Saudi Riyal, the PKR lost 5 paise for buying and 12 paise for selling, closing at 74.69 and 75.24, respectively.

Open-market rates for dollar on Friday

BID Rs 278.77

OFFER Rs 279.82

The Indian rupee closed at 96.5725 per dollar, little changed from its close at 96.5650 the previous session.

State-run banks were spotted offering dollars, most likely on behalf of the Reserve Bank of India, traders said.

Brent jumped 4% to over $98 a barrel, putting the psychological $100 threshold in striking distance, after Yemen’s Houthis said they had struck two Saudi oil tankers, heightening fears that global oil supply disruption could spread beyond the Strait of Hormuz.

Elevated oil prices present a key risk for India as they threaten to lift inflation, slow growth and widen the current account deficit.

Although Brent prices had dipped to near $70 per barrel last month, renewed hostilities in the Middle East have sparked a renewed surge and prompted investors to reload bearish wagers on the rupee.

Short positions on the Indian rupee have risen to an over one-month peak, per a Reuters poll.

“Geopolitical tensions and the resulting spike in oil prices have led to a recent unwinding of long INR positions. INR may remain exposed to swings in oil prices and risk sentiment,” analysts at BofA Global Research said in a note.

“Apart from widening the (current account) deficit, the stagflationary impact of higher oil prices leads to portfolio outflows from both equity and debt markets.”

India’s benchmark stock index Nifty 50 fell 0.5%, declining for the fourth consecutive session, while government bonds were on the backfoot as well, with the yield on the benchmark 10-year note fleetingly touching a one-month peak.

Elsewhere, traders were bracing for a hawkish European Central Bank meeting later in the day, with European shares and Wall Street futures in the red despite gains for most equity markets in Asia.

The Pakistani rupee extended its marginal gains against the US dollar on Thursday.

The local unit closed the day at 277.90, a gain of Re0.01 against the greenback.

On Wednesday, the Pakistani rupee settled at 277.91 against the dollar.

Furthermore, the US dollar largely stabilised on Thursday as renewed US-Iran tensions kept investors on edge.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, eased 0.06% to 101.05.

The greenback has gained as the worsening flare-up between Washington and Tehran triggered a rebound in oil prices and fanned inflation fears.

The euro was ​last up 0.07% at $1.1418.

Oil prices climbed above $100 on Thursday, reaching their highest level in nearly two months, after Yemen’s Houthis said they had attacked two Saudi oil tankers in the Red Sea, adding to concerns over global supply disruptions from a near-halt in trade through the Strait of Hormuz.

Brent futures rose $6.64, or 7%, to $100.71 a barrel at 10:52am ET (1452 GMT), exceeding $100 for the first time since late May. The global crude oil benchmark has risen nearly 40% this month and was in technically overbought territory for a ninth day in a row, the first time since September 2023.

Inter-bank market rates for dollar on Thursday

BID                            Rs 277.90

OFFER                      Rs 278.10

Open-market movement

In the open market, the PKR lost 73 paise for buying and gained 8 paise for selling against USD, closing at 278.76 and 279.86, respectively.

Against Euro, the PKR lost 60 paise for both buying and selling, closing at 319.79 and 322.78, respectively.

Against UAE Dirham, the PKR lost 4 paise for both buying and selling, closing at 76.31 and 76.85, respectively.

Against Saudi Riyal, the PKR lost 4 paise for buying and 5 paise for selling, closing at 74.64 and 75.12, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 278.76

OFFER                      Rs 279.86

The Pakistani rupee extended its marginal gains against the US dollar on Wednesday.

The local unit closed the day at 277.91, a gain of Re0.01 against the greenback.

On Tuesday, the Pakistani rupee settled at 277.92 against the dollar.

Credit ratings agency S&P Global raised Pakistan’s long-term sovereign credit rating to “B” from “B-”, citing stronger institutional stability and effective implementation of reforms under an IMF program.

“The stable outlook reflects our view of Pakistan’s improved political and institutional settings. Entrenched economic reforms will bring about a sustained period of steady growth and fiscal consolidation,” said S&P.

Internationally, the dollar gained broadly overnight, briefly pushing the euro just below $1.14, and it was holding its ground as US forces began an 11th ​straight night of strikes on Iran.

The euro was last at $1.1401, while the Australian dollar clung to the 70 cent level and the New ​Zealand dollar sat on support just above its 200-day moving average of $0.5825.

Sterling is also testing support, and fell through its ​200-day moving average to $1.3385 with traders weighing how new UK finance minister John Healey plans to fund spending.

Oil prices ‌rose to their highest in almost six weeks on Wednesday, with Brent crude surpassing $95 a barrel, on mounting concerns about disruptions to Middle Eastern supply routes because of escalating hostilities between the U.S. and Iran and threats to shipping by the Iran-backed Houthi militia in Yemen.

Brent crude futures were up $2.23, ​or 2.45%, at $93.24 a barrel by 1323 GMT, after hitting a session high of $95.47.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 277.91

OFFER                      Rs 278.11

Open-market movement

In the open market, the PKR gained 77 paise for buying and lost 29 paise for selling against USD, closing at 278.03 and 279.94, respectively.

Against Euro, the PKR gained 42 paise for buying and 40 paise for selling, closing at 319.19 and 322.18, respectively.

Against UAE Dirham, the PKR lost 3 paise for both buying and selling, closing at 76.27 and 76.81, respectively.

Against Saudi Riyal, the PKR lost 7 paise for buying and gained 1 paisa for selling, closing at 74.60 and 75.07, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 278.03

OFFER                      Rs 279.94

In its first update since the scheme was launched in early June, the Reserve Bank of India said the measures had mobilized $20.72 billion through July 17, with foreign currency non-resident deposits accounting for about $17.5 billion of the total.

The data is likely to allay concerns that the measures were seeing a sluggish response and might struggle to attract the level of inflows anticipated, economists said.

“The amount raised under the FCNR(B) deposit scheme is significantly above what news reports suggested and belies the prevailing narrative that banks were struggling to raise deposits, amid higher US rates and other bottlenecks,” analysts at Nomura said in a note.

The current programme has attracted funds at a much faster pace than a similar RBI scheme in 2013. Roughly $10 billion was mobilised in the first seven weeks of the 2013 programme, according to BofA.

India FX traders eye oil prices, RBI defence; bonds bulls await index decision

Economists added that the robust initial response bodes well, as such programmes typically see inflows skewed toward the later stages of the window.

If current trends are extrapolated using the fund mobilisation pattern seen in 2013, India could be on course to attract around $80 billion under the scheme, according to BofA.

BoP, rupee boost

The strong early response to the RBI’s measures is adding to confidence that India’s balance of payments position will remain in surplus in the current fiscal year, despite risks from volatile crude oil prices, economists said.

“Our balance-of-payments estimate is currently tracking a surplus of around $25 billion, with upside risks if FCNR inflows strengthen further,” Gaura Sen Gupta, chief economist at IDFC First Bank, said, while noting that her BoP forecast was based on Brent crude averaging $75-$80 a barrel, whereas prices have recently climbed near to $90.

“These inflows give the RBI more firepower to keep depreciation pressures on the rupee in check,” she added.

Indian corporates leap into arbitrage plays, reviving pain point for rupee

A stronger balance of payments position may influence the central bank’s currency intervention strategy and use of FX reserves as the rupee returns to trading near record low levels against the dollar.

The current RBI leadership believes foreign exchange reserves should be conserved, viewing reserve adequacy more conservatively than headline figures suggest, a source familiar with central bank discussions told Reuters.

Traders are also paying close attention to the scale of inflows that India’s capital flow measures would attract over a period to bolster India’s FX kitty that is used to defend the rupee.

On Tuesday, the Indian currency rose 0.2% to 96.2350 against the U.S. dollar.

Oil prices declined by over 1% before turning higher again as markets weighed reports of mediation efforts between the U.S. and Iran against an exchange of fresh attacks between the two and threats of a naval blockade of Saudi Arabia by Yemen’s Houthis.

Better-than-expected inflows from the Reserve Bank of India’s measures also helped market sentiment.

In its first update since the scheme was launched in early June, the RBI said its measures had mobilised $20.72 billion between June 8 and July 17.

Analysts at Nomura said they stick with their estimate of $55 billion of inflows from a scheme to attract overseas deposits from non-resident Indians, with the flows accelerating in August and September.

Market participants will focus on how the central bank uses its reserves to defend the rupee.

The markets’ uncertainty over the central bank’s intentions stems from a divergence of views in the bank over the extent of intervention needed to manage the currency, Reuters reported, citing three sources familiar with the central bank’s discussions.

The RBI did not respond to an email seeking comment.

Asian currencies were mostly rangebound while global stocks pushed higher with focus on earnings from companies including Alphabet and Intel to gauge whether the AI trade has more room to run.

The Pakistani rupee extended its gains, appreciating 0.01% against the US dollar on Tuesday.

The local unit closed the day at 277.92, a gain of Re0.03 against the greenback.

On Monday, the Pakistani rupee settled at 277.95 against the greenback.

The US dollar hovered ​near a one-week high on Tuesday, with markets torn between conflicting Middle East signals, ‌as hostilities in the region stoked renewed fears over energy supplies while hopes for a ceasefire offered some relief.

Against the yen, the dollar was largely flat at 162.50 yen.

The euro was also little changed at $1.1415, while ​the British pound held firm at $1.3434 after Britain’s new Prime Minister Andy Burnham vowed to ​stick to fiscal rules.

The US dollar index, which measures the currency against a basket ⁠of six peers, was steady at 100.96, near its highest level since July 15.

Oil prices gained more than 2% on Tuesday on fresh attacks exchanged by the US and Iran as well as threats of a naval blockade of Saudi Arabia by Yemen’s Houthis.

Brent crude futures rose $1.89, or 2.12%, to $91.11 a barrel by 1312 GMT.

Inter-bank market rates for dollar on Tuesday

BID Rs 277.92

OFFER Rs 278.12

Open-market movement

In the open market, the PKR gained 4 paise for buying and 3 paise for selling against USD, closing at 278.80 and 279.65, respectively.

Against Euro, the PKR gained 54 paise for buying and 48 paise for selling, closing at 319.61 and 322.58, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 76.24 and 76.78, respectively.

Against Saudi Riyal, the PKR gained 6 paise for buying and remained unchanged for selling, closing at 74.53 and 75.08, respectively.

Open-market rates for dollar on Tuesday

BID Rs 278.80

OFFER Rs 279.65

The Indian rupee’s fall could have been steeper if not for dollar-selling intervention by the Reserve Bank of India, via state-run banks, traders said.

The intervention, alongside an afternoon retreat in oil prices, helped the Indian rupee close out the session at 96.4450 per dollar, down nearly 0.2% from its previous close.

Earlier in the day, the currency had touched 96.5250, its weakest level since mid-May.

Brent crude prices retreated from above $90 per barrel after Iran’s foreign ministry said negotiations with the U.S. could be pursued based on national interests.

U.S. forces hit Iran for a ninth consecutive day on Monday amid growing concerns over shipping through the Strait of Hormuz after Iran said two oil tankers had exploded and been immobilised.

Asian currencies and stocks were mixed while the dollar index was steady at 100.7.

“Higher energy prices mean that the Federal Reserve will have to remain alert, and in this environment we struggle to see that any investors already owning dollars will be inclined to sell,” analysts at ING said in a note.

Markets are currently pricing in about 36 basis points of rate increases by the Fed over the next 12 months. Meanwhile, swap markets in India are pricing about 70 bps of rate hikes by the Reserve Bank of India over the same time frame.

India is the world’s third-largest oil importer and consumer and is highly vulnerable to oil price swings, which can upset the economy’s growth-inflation balance.

The Pakistani rupee extended its gains against the US dollar on Monday.

The local unit closed the day at 277.95, a gain of Re0.01 against the greenback.

On Friday, the Pakistani rupee settled at 277.96 against the greenback.

The dollar made a modest advance against most of its global peers at the start of Asian trading on Monday.

The US dollar climbed 0.1% to 162.48 yen, the greenback’s strongest level since July 9, as geopolitical tensions rose and investors sought safe-haven ​assets.

The euro was down 0.1% at $1.1426, while the British pound was ​level at $1.3445. The Australian dollar slipped 0.1% to $0.6975, while the New ⁠Zealand dollar declined 0.2% to $0.5833.

Oil prices were ​steady on Monday, pulling back from earlier highs as price pressure from hopes of renewed US-Iran negotiations was ‌countered by Yemen’s Houthis declaring a naval blockade against Saudi Arabia.

Benchmark prices had earlier touched more than one-month highs on concern over disruption to shipments through the Strait of Hormuz. The Middle East conflict escalated over the weekend, with the U.S. conducting a ninth straight night of attacks against Iran while US allies Kuwait ​and Bahrain reported more Iranian strikes.

Brent crude futures were down 6 cents, or around 0.1%, at $88.04 a barrel by 1321 ​GMT after hitting $91.42 for their highest since June 11. US West Texas Intermediate crude was down 2 cents, ⁠or 0.2%, at $82.29 after touching its highest level since June 12 at $85.39.

Inter-bank market rates for dollar on Monday

BID Rs 277.95

OFFER Rs 278.15

Open-market movement

In the open market, the PKR gained 2 paise for buying and remained unchanged for selling against USD, closing at 278.84 and 279.68, respectively.

Against Euro, the PKR lost 24 paise for buying and 21 paise for selling, closing at 320.15 and 323.06, respectively.

Against UAE Dirham, the PKR lost 2 paise for buying and 1 paisa for selling, closing at 76.24 and 76.78, respectively.

Against Saudi Riyal, the PKR lost 2 paise for buying and remained unchanged for selling, closing at 74.59 and 75.08, respectively.

Open-market rates for dollar on Monday

BID Rs 278.84

OFFER Rs 279.68

The Indian rupee closed at 96.28 per dollar, down about 1% week-on-week, stung by a 13% rise in Brent crude oil prices as fighting between the U.S. and Iran intensified, choking energy supplies through the Strait of Hormuz yet again.

Iran said it launched fresh strikes on U.S. facilities in the Middle East on Friday, including the first direct attack in Syria, after a sixth straight night of U.S. strikes on Iranian military facilities.

Brent crude oil prices were last up nearly 2% on the day at $85.7 per barrel.

Dollar sales by state-run banks, most likely on behalf of the Reserve Bank of India, helped the rupee snap a four-day losing streak even as merchant dollar demand remains robust, traders said.

“Exporters have once again withdrawn from the market anticipating further weakness. Importers are not inclined to let any dip (on USD/INR) go,” an FX salesperson at a foreign bank said.

Meanwhile, another brutal selloff for chipmakers rippled through global stock markets on Friday but Indian stocks held their ground on account of their scant exposure to the booming artificial intelligence sector.

MSCI’s broadest index of Asia-Pacific shares, excluding Japan, was down nearly 3%, while India’s Nifty 50 rose 1%.

In the near term, traders are keeping their focus on two factors: oil prices and how firmly the RBI will stand against further rupee weakness as the currency approaches record low levels of near 97 per dollar.

“Should rupee depreciation pressures persist, the RBI may find itself caught between a rock and a hard place, balancing spot-market operations and managing its forward-dollar book,” said Krishna Bhimavarapu, APAC economist at State Street Investment Management.

The central bank’s net forward dollar liabilities stood at $106.6 billion in May.

The Pakistani rupee extended its gains against the US dollar on Friday.

The local unit closed the day at 277.96, a gain of Re0.01 against the greenback.

On Thursday, the Pakistani rupee settled at 277.97 against the greenback.

Pakistan’s current account recorded a marginal deficit of $139 million in FY26, reversing a surplus of $1.84 billion in the previous fiscal year, according to data released by the State Bank of Pakistan (SBP) on Friday.

Despite record workers’ remittances, Pakistan’s external account was pushed into negative due to high imports, while exports remained largely stagnant during the outgoing fiscal year.

Internationally, the dollar held steady on ​Friday but was poised for a weekly decline as a softer-than-expected U.S. inflation report this ‌week led traders to cut bets on imminent rate hikes from the Federal Reserve.

In currency markets, the euro was ⁠at $1.1445, set for a 0.29% rise in the week.

Sterling fetched $1.3476, on course for a 0.56% gain in ​the week, its third straight week of gains on fading concerns over Britain’s fiscal outlook.

The Japanese yen was fetching 162.39 ​per US dollar, rooted near the 40-year low of 162.84 it touched at the start of the month as traders remained wary of official intervention from Tokyo.

That left the dollar index, which measures the US currency against six other units, at 100.72, set ​for a weekly drop of 0.24%.

The index hit a one-month low earlier this week on easing chances ​of a near-term rate hike, but safe-haven flows have helped support the greenback.

Oil prices rose by more than ‌2% on Friday after the U.S. and Iran stepped up attacks across the Gulf, with shipping threatened by a potential Red Sea closure on top of the restricted traffic through the Strait of Hormuz.

Brent crude futures rose by $1.77, or 2.1%, ​to $86 a barrel by 1158 GMT. US West Texas Intermediate futures were up $1.91, or 2.4%, at $80.86.

Inter-bank market rates for dollar on Friday

BID Rs 277.96

OFFER Rs 278.16

Open-market movement

In the open market, the PKR gained 1 paisa for buying and remained unchanged for selling against USD, closing at 278.86 and 279.68, respectively.

Against Euro, the PKR gained 68 paise for buying and 67 paise for selling, closing at 319.91 and 322.85, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and gained 1 paisa for selling, closing at 76.22 and 76.77, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for both buying and selling, closing at 74.57 and 75.08, respectively.

Open-market rates for dollar on Friday

BID Rs 278.86

OFFER Rs 279.68

The Indian rupee closed at 96.3450 per dollar, down 0.1% from its previous close and hovering close to its weakest level in nearly two months.

The currency has fallen back to levels seen before policymakers announced a host of measures to shore up dollar inflows, ranging from incentives for overseas dollar deposits to removal of taxes on foreign investments in government debt.

Traders have pointed to elevated dollar demand from merchants alongside intermittent NDF maturities that have hurt the rupee, like on Thursday.

“Technically, the 95.80-96.00 resistance zone has been decisively breached, with USD/INR now trading comfortably above it. As long as the pair sustains above this area, the path of least resistance remains higher,” said Amit Pabari, managing director at FX advisory firm CR Forex.

Elsewhere, Asian currencies were mostly stronger by 0.1% to 0.4% while the dollar index was steady at 100.5. Asian stocks were in the red but India’s benchmark equity index, Nifty 50, held its ground to close little changed as Brent crude oil prices dipped below $85 per barrel.

Iran said on Thursday that the Strait of Hormuz was an inviolable “red line”, warning that if U.S. President Donald Trump carried out his threat to attack Iran’s infrastructure, it would strike all infrastructure across the Gulf region.

The U.S. launched a fifth night of attacks on Wednesday and re-imposed a naval blockade of Iran’s ports, which Washington says is aimed at reopening the key energy artery.

“We continue to see two-sided risks to our Brent crude price forecast of $80 in 2026 Q4 and $75 in 2027, with risks skewed to the upside in the near term as the risk of further attacks on tankers and Middle East energy infrastructure has increased,” analysts at Goldman Sachs said in a note.

The Pakistani rupee extended its gains against the US dollar on Thursday, strengthening past Rs278 to its highest level in 19 months.

The local unit closed the day at 277.97, a gain of Re0.03 or 0.01% against the greenback.

On Wednesday, the rupee closed at 278.00 against the dollar.

The US dollar hovered near a one-month ​low on Thursday, as soft inflation data reinforced bets that the Federal Reserve can stay ‌patient on interest rate hikes.

The greenback slipped against the Japanese yen for the third trading session, by 0.1% to 162.075 yen . The euro was 0.1% higher at $1.1472, ​its strongest in a month.

The US dollar index, which tracks the currency against ​six peers, was little changed at 100.47, hovering near its lowest since June 18. It has fallen ​0.8% over the previous two sessions and is on track for a weekly decline.

Oil prices ​rose more than 1% on Thursday as concerns over energy supplies increased after the Iran war ‌escalated with intensifying strikes in the Middle East and as Tehran asked Yemen’s Houthis to stand ready to close the Red Sea oil route.

Brent crude futures were up 93 cents, or 1.09%, to $85.88 a barrel at 1420 GMT, while U.S. West Texas ​Intermediate futures were up 89 cents, or 1.12%, to $80.49 a barrel.

Inter-bank market rates for dollar on Thursday

BID Rs 277.97

OFFER Rs 278.17

Open-market movement

In the open market, the PKR gained 3 paise for buying and remained unchanged for selling against USD, closing at 278.87 and 279.68, respectively.

Against Euro, the PKR lost 1.11 rupee for buying and 1.05 rupee for selling, closing at 320.59 and 323.52, respectively.

Against UAE Dirham, the PKR lost 5 paise for buying and 2 paise for selling, closing at 76.22 and 76.78, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for buying and 2 paise for selling, closing at 74.56 and 75.07, respectively.

Open-market rates for dollar on Thursday

BID Rs 278.87

OFFER Rs 279.68

The Indian rupee closed at 96.2550 per dollar, little changed from its close at 96.20 in the previous session.

The currency shot to an intraday peak of 96.06 following dollar sales from foreign banks, likely on behalf of custodial clients, but lost ground as merchant dollar demand picked up, traders said.

Asian currencies were largely range-bound as well, while the dollar index steadied just shy of the 101 mark after softer-than-expected U.S. inflation data pegged it back on Tuesday.

Markets have scaled back wagers on rate hikes by the U.S. Federal Reserve, but sentiment remains tentative and prone to a turnaround in case fighting between the U.S. and Iran escalates and oil prices rise further.

Brent futures climbed 2% to $86.44 a barrel, as the U.S. reimposed a naval blockade on Iranian ports and Iran’s Islamic Revolutionary Guard Corps threatened to close “all other export corridors that benefit the U.S. and its allies”.

“It looks like investors will struggle to price in a benign inflation environment given developments in the energy sector, where both oil and natural gas are on the rise again, while refined products like diesel are surging as Ukraine intensifies its attack on Russian refineries,” ING said in a note.

Interest rate swap markets are pricing in about a 40-basis-point Fed rate hike over the next 12 months and 65 bps by the Reserve Bank of India.

Both central banks are expected to hold pat on rates at their upcoming meetings in late July and early August. India’s consumer inflation rose above the 4% medium-term target for the first time in 17 months in June, per data released earlier this week.

The Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Wednesday.

At close, the local currency settled at 278.00, a gain of Re0.01 against the greenback.

On Tuesday, the rupee closed at 278.01 against the dollar.

The dollar extended its weakness on Wednesday after tumbling from ​a two-week high.

Against the yen, the dollar fetched 162.08, down 0.1%.

The euro and the British pound each gained 0.1%, trading at $1.1433 and $1.3401, respectively.

Oil extended gains as the US said it had begun a new wave of strikes against Iranian military ‌installations on Wednesday, aiming to limit Tehran’s ability to strike commercial shipping in the Strait of Hormuz.

Washington had earlier reimposed a naval blockade of Iranian ports and launched overnight strikes, prompting Iran’s Islamic Revolutionary Guard Corps to threaten to close “all other export corridors that benefit the U.S. and its allies”.

Brent ​futures gained 18 cents, or 0.2%, to $84.91 a barrel at 1214 GMT. West Texas Intermediate futures rose 26 cents, ​or 0.3%, to $79.60 a barrel.

Inter-bank market rates for dollar on Wednesday

BID Rs 278.00

OFFER Rs 278.20

Open-market movement

In the open market, the PKR lost 3 paise for buying and remained unchanged for selling against USD, closing at 278.90 and 279.68, respectively.

Against Euro, the PKR lost 83 paise for buying and 75 paise for selling, closing at 319.48 and 322.47, respectively.

Against UAE Dirham, the PKR lost 2 paise for buying and 1 paisa for selling, closing at 76.17 and 76.76, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for buying and gained 1 paisa for selling, closing at 74.55 and 75.05, respectively.

Open-market rates for dollar on Wednesday

BID Rs 278.90

OFFER Rs 279.68

The Indian rupee touched a low of 96.2375 per dollar, its weakest level since May 22, before ending the session down 0.6% at 96.20.

Brent crude oil futures climbed over 4% to $87 per barrel after the U.S. reimposed a naval blockade on Iran, while renewed attacks between Washington and Tehran heightened concerns over energy flows.

Indian equities took a hit as well, with the benchmark Nifty 50 index declining 0.7%, while the yield on the 10-year benchmark bond rose 6 basis points.

“Bias of USD/INR had shifted to ‘sell on upticks’ last month, but that is yet again turning towards a ‘buy on dips,’” a trader at a foreign bank said.

In the near-term, the rupee is likely to remain highly sensitive to oil prices, and traders will closely watch how firmly the central bank defends the currency, the trader added.

On Tuesday, traders flagged likely dollar sales by the Reserve Bank of India across the spot and non-deliverable forward markets, helping contain the rupee’s losses.

Market participants are also keeping a close eye on the scale of inflows generated by India’s policy measures announced last month.

The country’s special deposit programme for overseas Indians has attracted about $10 billion so far, Reuters reported on Tuesday.

Attention now turns to a key U.S. consumer inflation report due later in the day, which could shape expectations around potential rate increases by the Federal Reserve.

“Short-term momentum is swinging back in favour of the dollar as the FX market is finally starting to take the Gulf re-escalation more seriously,” ING said in a note.

The Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Tuesday.

At close, the local currency settled at 278.01, a gain of Re0.01 against the greenback.

On Monday, the rupee closed at 278.02 against the dollar.

The dollar steadied on ​Tuesday ahead of US inflation data, with Middle East tensions lifting oil prices while the yen held a soft tone amid caution ‌over possible intervention and after policymakers’ comments on state pension fund allocations.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, eased 0.04% to 101.23.

The euro was up against the dollar at $1.1388, and sterling gained 0.07% to $1.3355.

Meanwhile, Federal Reserve Governor Christopher Waller said rates may need to rise “in the near term” if data shows inflation remaining well above the central bank’s 2% target.

Oil prices rose about 2% to a one-month high on Tuesday after the US ​reimposed a naval blockade on Iran and as renewed attacks between Washington and Tehran heightened concerns over energy flows through the Strait of Hormuz.

Before ‌the Iran war about 20% of global oil supplies flowed through the strait.

Brent futures rose $1.47, or 1.8%, to $84.77 per barrel at 11:36 am EDT (1536 GMT), while US West Texas Intermediate (WTI) crude rose $1.26, or 1.6%, to $79.40.

Inter-bank market rates for dollar on Tuesday

BID Rs 278.01

OFFER Rs 278.21

Open-market movement

In the open market, the PKR gained 1 paisa for buying and lost 4 paise for selling against USD, closing at 278.87 and 279.68, respectively.

Against Euro, the PKR gained 49 paise for buying and 36 paise for selling, closing at 318.65 and 321.72, respectively.

Against UAE Dirham, the PKR lost 1 paisa for buying and 4 paise for selling, closing at 76.15 and 76.75, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for buying and remained unchanged for selling, closing at 74.54 and 75.06, respectively.

Open-market rates for dollar on Tuesday

BID Rs 278.87

OFFER Rs 279.68

The Pakistani rupee posted marginal gain, appreciating 0.01% against the US dollar in the inter-bank market on Monday.

At close, the local currency settled at 278.02, a gain of Re0.03 against the greenback.

On Friday, the rupee closed at 278.05 against the dollar.

Meanwhile, the dollar rose against most of its peers as a renewal of hostilities in the Middle East fanned inflation fears and raised prospects for interest rate hikes among global central banks.

Against Japan’s currency, the dollar was up 0.2% at 162.075 yen. The euro weakened 0.1% to $1.1397 while the British pound slipped 0.2% to $1.3374.

The Australian dollar was down 0.3% at $0.6928 while its kiwi counterpart eased 0.1% to $0.5757.

The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.1% at 101.13 after earlier touching its highest level since July 8.

Oil prices surged more than 3% on Monday after renewed military ‌strikes between the United States and Iran reignited concerns over energy shipments through the Strait of Hormuz.

Brent crude futures were up $2.39, or 3.14%, to $78.40 at 1321 GMT, while US West Texas Intermediate crude was up $2.17, or 3.04%, to $73.58 a barrel. Both contracts rose more than 4% earlier in the session.

Inter-bank market rates for dollar on Monday

BID Rs 278.02

OFFER Rs 278.22

Open-market movement

In the open market, the PKR lost 6 paise for buying and 20 paise for selling against USD, closing at 278.88 and 279.64, respectively.

Against Euro, the PKR gained 64 paise for buying and 55 paise for selling, closing at 319.14 and 322.08, respectively.

Against UAE Dirham, the PKR lost 4 paise for buying and 2 paise for selling, closing at 76.14 and 76.71, respectively.

Against Saudi Riyal, the PKR lost 3 paise for buying and 7 paise for selling, closing at 74.53 and 75.06, respectively.

Open-market rates for dollar on Monday

BID Rs 278.88

OFFER Rs 279.64